In
order to standardize the bases of calculating
“replacement cost new” in valuing properties
by the Cost Approach to Value, the following
annual standard construction costs were
recently set forth. This is considered
an estimate. Adjustment to specific conditions
can be made to suit each property.

Costs
of constructions are in Baht/sq.metre. The costs consist of costs of building
materials for structural, architectural
and system works, labour costs, operational
costs and contractor's profits as well
as the Value Added Tax (VAT) of 7% and
professional premiums of 0.96%. No inclusion
is extended to interests, project management
costs, design, sale costs and the like
which are not directly related to the construction.

This
is an effort which has been conducted on
annual basis since 2000. A working group
of valuation experts was appointed by the
Valuers Association of Thailand to work
out costs of these constructions.

In 2019, it is expected that other types of
buildings will be added onto this standard
costs. In addition to costs per sq.metre,
the costs will be divided into different
stages of construction works such as piling,
structure, system works, and architectural
finishing.

Standard Costs of Construction for valuation purposes was recently announced. Construction costs for wooden housing have increased for some 6% during June 2019 - December 2019. However, for most of the concrete construction with stell as an integral part of the structure, costs were decreased for some 6-8% in the case of tennis courts, on-ground parking lots as well as warehouses. Costs of construction of shophouses and underground parking were decreased for 3-4%. However, in the case of high-rise buildings, prices were decreased insignificantly. During June 2019 - December 2019, most building materials have stayed at the same price except steel which have had an 8% increase in price. However, this will not contribute much to the overall construction prices at large.